• Works exactly like all the other Option ARMs; e.g., 5 monthly pmt. options, etc.

• All advantages of an 80/10/10 without the hassle

• No 2nd mortgage required

• No monthly Mortgage Insurance (M.I.) 

• 10% of the Sales Price down payment

• Consolidate an existing 1st and 2nd mtg. or get rid of existing MI

• Flexible Underwriting 

• Starting Rates in three percent range

• Option to reduce future interest rate (Index + Margin) and Life Cap - only for full doc., not allowed on "stated-income" (see below)

Max Loan Amount: $650,000; max LTV = 90%

Down payment & Gift funds:

• Purchase: 10% down payment: 5% must come from your own *Seasoned funds including Reserves; 5% of the Sales Price can be gift, including all Closing Cost.  However, if a 1^st time Homebuyer 100% Gift is allowed for down payment, closing costs, and cash Reserves - primary residence only.
   

• Refinance: must have at least 10% existing equity. If paying off existing 2nd mtg. it must be seasoned (not used in the past 12 months.)

Eligible Properties: SFR, Condos, Manufactured homes. 

Occupancy: Owner Occupied 1 and 2 Units. Second Home -1 Unit- Max $400k.  No Investment properties.

The "Starting Rate" - We will e-mail you a quote with the Starting Rate, Margin and Life cap and fees 

Escrows: required

Credit Scores: Case-by case

Qualify @ fully-indexed rate or Index + Margin usually with 28/36 ratios - (Higher ratios allowed w/really good FICO scores case-by-case.)

Stated-income allowed case-by-case

2nd homes - Same pricing as Owner Occupied but max loan amount is sometimes lower.

Non-Resident Aliens with working H1 VISA allowed - (add ons apply.) No A, B, or F VISAs allowed.) Must have at least 3 yrs. left on Working VISA.

Interest Rate Reduction Option AVAILABLE by .60 reduction in Margin and Life Cap when you pay down your exiting balance by 20% or your house re-appraises for 25% LTV. When you have paid down your balance, or feel that your house will appraise for 25% more than the original appraisal, you must request the Margin and Life Cap reduction from Customer Service. The Customer Service phone number will be on your monthly statement) when the criteria below is met.  You then would have a choice of your monthly payment being lowered, or keep the payment the same, which would provide for a faster payoff.

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